'.(1) Where on or after 1st April 2002 any person ("the donor") makes a gift of relevant goods from trading stock for a relevant purpose then:

(a)

no amount shall be required to be brought into account as a trading receipt or gain in consequence of the making or receiving of the gift; and

(b)

the costs of making and delivering the gift shall be deducted as an expense of the trade of the donor in computing the profits of that trade.

(2) Where the donor or any person connected with him receives any benefit in money or money's worth attributable to the making of that gift, then for the accounting period in which the benefit is received the donor shall be deemed to be in receipt of income chargeable to tax under Case VI of Schedule D on an amount equal to the higher of

(a)

any relief claimed pursuant to subsection (1), and

(b)

the amount of the benefit in question.

(3) The Secretary of State may by order prescribe relevant purposes and relevant goods to have effect for the purposes of this section, either generally or in respect of a given time or situation.

'.(1) The promotion of sport, provision or sports facilities, physical education or healthy recreation by a registered community amateur sports club shall be treated as having a charitable purpose for the purposes of the Taxes Acts with effect from 17th April 2002.

'.(1) After section 162(3) of the Taxation of Chargeable Gains Act 1992 (roll-over relief on the transfer of business) insert

"(3A) For the purpose of computing any chargeable gain accruing on the disposal of any new asset that is eligible for taper relief under subsection (3) above the qualifying holding period for taper relief shall be deemed to have commenced on the period after 5th April 1998 when the business so transferred under subsection (1) above was held and to have ceased upon the disposal of the new asset.".'.

'.(1) After subsection (2)(d) of section 36 of the Finance Act 1998, insert

"(da)

may make provision for members of the group of companies to elect to base this corporation tax payment on the previous year's taxable profits;".

(2) In section 59E(1) of the Taxes Management Act 1970, at end insert

"such that for a company:

(a)

payment of corporation tax shall be paid in four annual instalments (for the purposes of this subsection the 'Instalment Date');

(b)

the corporation tax payable on each of the first, second and third Instalment Dates shall be equal to one quarter of the total corporation tax paid by the company in the immediately preceeding year of assessment;

(c)

the corporation tax payable on the fourth Instalment Date shall be equal to the aggregate of

(i)

one quarter of the total corporation tax paid by the company in the immediately preceding year of assessment; and

(ii)

the difference between the total corporation tax liability of the company concerned for the year of assessment in which the fourth Instalment Date falls and the corporation tax liability of the company in the immediately preceding year of assessment.".'.

'.(1) In section 13 Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) in subsection (5) omit the word "or" immediately preceding paragraph (c) and at the end of that paragraph insert "; or

(e)

a chargeable gain accruing on the disposal of an asset held by a company which complies with subsection (2) of section 13A Taxes Act 1988 (close investment-holding companies).".

(2) A company ("the relevant company") complies with this subsection in any accounting period if throughout that period it exists wholly or mainly for any one or more of the following purposes

(a)

the purpose of carrying on a trade or trades on a commercial basis,

(b)

the purpose of making investments in land or estates or interests in land in cases where the land is, or is intended to be, let to persons other than

(i)

any person connected with the relevant company, or

(ii)

any person who is the wife or husband of an individual connected with the relevant company, or is a relative, or the wife or husband of a relative, of such an individual or of the husband or wife of such an individual,

(c)

the purpose of holding shares in and securities of, or making loans to, one or more companies each of which is a qualifying company or a company which

(i)

is under the control of the relevant company or of a company which has control of the relevant company, and

(ii)

itself exists wholly or mainly for the purpose of holding shares in or securities of, or making loans to, one or more qualifying companies.

(d)

the purpose of co-ordinating the administration of two or more qualifying companies,

(e)

the purpose of a trade or trades carried out on a commercial basis by one or more qualifying companies or by a company which has control of the relevant company, and

(f)

the purpose of the making, by one or more qualifying companies or by a company which has control of the relevant company, of investments as mentioned in paragraph (b) above.'.